§ Sir Nicholas Fairbairn
To ask the Secretary of State for Scotland if he will take steps to arrange for the green pound to be introduced into the European monetary system in order to restrict the disadvantage of Scottish farmers from 20 to 6 per cent. and thereafter to parity.
§ Lord James Douglas-Hamilton
The entry of sterling into the exchange rate mechanism of the European monetary system would have no direct effect on green rates or agricultural support prices. The disadvantage to our producers will be overcome by reducing monetary gaps through devaluing the green pound. Green currency devaluations are normally considered in the EC price-fixing negotiations. In the current round we shall be seeking a substantial devaluation as part of our commitment to remove all monetary gaps by the end of 1992.